The rising cost of energy from sources such as coal has experts predicting that the cost of solar energy in the U.S. could reach par with more traditional energy sources as soon as 2010. Several companies and organizations have already started to incorporate the alternative energy. Apple has applied for a solar panel patent that would power electronics like their popular iPod without the need to be plugged in. World Series winners the Boston Red Sox have also started a transition to solar power as the first professional sports team to do so, having installed hot water panels to replace one-third of the gas required to heat their home field Fenway Park.

Solar power is still a far more expensive option than energy from fossil fuels but there are several factors that could change all of that within the next five years. For one thing the restricted supply of silicon, the most expensive component involved in the building of solar panels, is expected to open up, making silicon more easily available, thus causing the price to drop. However, the cyrstalline silicon used in the panels is also being edged out by thin-film panels that require very little silicon in their production, which could lead to a competition for dominance in the industry.

Experts also say the outcome of the U.S. presidential election later this year will have a dramatic impact on the cost and availability of solar power. A win for the Democrats would see stricter carbon emissions caps, action that many feel current President George Bush has successfully blocked. More stringent caps would make emitting carbon an expensive practice and discourage the burning of fossil fuels. If Democratic nominee Barack Obama has his way, 25 per cent of electricity generated by U.S. utilities will be required  to come from renewable sources such as solar or wind power by 2025. Republican nominee John McCain has also voiced his support for alternative energy sources.

"While silicon oversupply in mid-2009 is likely to pressure companies' margins, we believe investors at some point will become comfortable with solar's improving costs," said Ronan Wolfsdorf, a solar and renewable energy analyst at consultants Macroenergy Monitor in Cambridge, Massachusetts.

"The solar market needs to cross this great divide, and a lot of that has to do with cost. But one thing to remember is that tougher regulations on emissions of carbon into the atmosphere are going to translate into higher prices for electricity produced by conventional sources," he said.

"That will make solar more competitive in the long run."

» Reuters